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Issues:
1. Non-compliance with the stay order passed by the Commissioner (Appeals). 2. Interpretation of Notification No. 53/03-Cus. and its applicability. 3. Rejection of benefit claimed under Notification No. 20/06 due to timing of claim. Issue 1: Non-compliance with stay order The Appellate Tribunal noted that the Commissioner (Appeals) had dismissed the appeal due to non-compliance with the stay order, which required the appellant to deposit 50% of the duty and penalty amount. However, the Tribunal found the stay order to be inadequate as it did not consider the merits of the case or the appellant's financial condition. Citing a precedent from the Karnataka High Court, the Tribunal emphasized that interim orders are subject to modification, contrary to the Commissioner's view. Therefore, the Tribunal allowed the appeal without the pre-deposit condition and remanded the matter back to the Commissioner for a decision on merits. Issue 2: Interpretation of Notification No. 53/03-Cus. The Tribunal analyzed Notification No. 53/03-Cus., which exempted imported goods from the Special Additional Duty of Customs under Section 3A. Despite Section 3A being replaced by Section 3(5) later, the corresponding change in the notification was made only after a significant delay. Relying on a Supreme Court decision, the Tribunal held that such amendments should be treated retrospectively. Consequently, the appellant was deemed entitled to the benefit of the notification. Additionally, the Tribunal highlighted another notification, No. 20/06, which exempted goods from the Special Additional Duty of Customs. The appellant's claim under this notification was initially rejected due to the timing of the claim, a decision deemed inconsistent with established legal principles. The Tribunal concluded that the appellant had a strong case and allowed the stay petition, directing the Commissioner to decide the appeal on merits without requiring any pre-deposit. Issue 3: Rejection of benefit under Notification No. 20/06 The Tribunal addressed the rejection of the benefit claimed under Notification No. 20/06, emphasizing that the appellant should be allowed to claim the benefit during adjudication, especially when the Revenue had reopened the assessment. The Tribunal asserted that the appellant was entitled to the benefit if available under any notification, regardless of the timing of the claim. Consequently, the Tribunal found the reasoning of the original adjudicating authority flawed and ruled in favor of the appellant, allowing the stay petition and remanding the matter for a decision on merits without pre-deposit requirements.
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